PFC Sanctions Rs 15,000 Cr, Forays into Airport Funding
Power Finance Corporation (PFC), a state-owned non-banking financial company (NBFC), has
sanctioned Rs 15,000 crore in new loans for various projects, including its maiden financing for a
greenfield airport in Andhra Pradesh.
The announcement was made on October 3, 2023, after the company’s board of directors (BOD)
meeting. The loans have been sanctioned for a variety of projects, including power generation,
transmission, and distribution, as well a renewable energy airport project.
Some of the key projects that have received funding from PFC include:
➢ Rs 3,000 crore for a 660 MW supercritical thermal power plant in Rajasthan
➢ Rs 2,000 crore for a 500 MW solar power plant in Gujarat
➢ Rs 1,500 crore for a 220-kV transmission line project in Maharashtra
➢ Rs 1,000 crore for a 100 MW wind power plant in Tamil Nadu
➢ Rs 500 crore for a greenfield airport project in Andhra Pradesh
PFC’s foray into funding airport projects is a new development. The company is looking forward to
diversify its portfolio and expanding into new infrastructure segments. The greenfield airport project in Andhra Pradesh is expected t be a major boost to the state’s economy and infrastructure.
PFC’s Q1 FY24 Net Profit Rises 31% to Rs 5,982 Crore
Power Finance Corporation (PFC) reported a 31% increase in its consolidated net profit to Rs 5,982.14 crore in the first quarter of the financial year 2023-24 (Q1 FY24), from Rs 4,579.53 crore in the corresponding quarter of the previous financial year. The company’s total income rose 13% to Rs 21,001.44 crore in Q1 FY24, from Rs 18,544.04 crore in Q1 FY23.
PFC’s asset quality improved during the quarter, with gross non-performing assets (NPAs) declining to 2.99% from 3.11% a year ago. Net NPAs also fell to 1.27% from 1.45% in the same period. The company’s board of directors recommended a 1:4 bonus issue for approval at the upcoming annual general meeting.
PFC’s strong performance in Q1 FY24 was driven by a combination of factors, including higher interest income, lower provisions, and improved asset quality. The company’s foray into new infrastructure segments, such as airports and green hydrogen, is also a positive development.
PFC to raise Rs 10,000 crore through tax-free bonds
PFC plans to raise Rs 10,000 crore through tax-free bonds in the current financial year. The company will use the proceeds to finance power projects and other infrastructure developments.
PFC is one of the few companies that is allowed to issue tax-free bonds. The bonds are attractive to investors as they offer exemption from income tax on the interest earned.
PFC to partner with NTPC to develop Green Hydrogen projects
PFC has signed a memorandum of understanding (MoU) with NTPC to develop green hydrogen
projects in India. The companies will work together to identify and develop potential projects.
Green hydrogen is produced using renewable energy sources, such as solar and wind power. It is a clean and sustainable fuel that can be used in a variety of applications, including power generation, transportation, and industrial processes.
PFC Inks MoU with IFC to Promote Sustainable Financing in India
PFC has inked an MoU with the International Finance Corporation (IFC), a member of the World Bank Group, to promote sustainable financing in India. The two organizations will work together to develop and implement sustainable financing solutions for the power sector and other infrastructure sectors. The MoU also includes a provision for the IFC to provide technical assistance to PFC to help it strengthen its sustainable financing capabilities.